The fast food industry remains a competitive one, and even more so with the rise of healthier options like sushi. So how do franchises stay relevant?
“We don’t just do sushi,” says Tokyo Sushi Kitchen founder Dennis Lay.
“It accounts for 60 per cent of sales, but 40 per cent comes from other items, Bento boxes and ready-to-go meals. We still have a lot of meal options for less than $10.”
On one hand, the five-year-old business is working to convert older consumers to sushi, while the other target is children.
“Our future is focussed on kids, the concept based around anime cartoons and bright colours.”
The idea is to attract little consumers and create as much excitement around an avocado sushi meal as the purchase of a Happy Meal. A $4.95 kids’ meal is being introduced, complete with colouring page, competitions and movie-ticket draws.
“We have a great deal, a sushi day at schools. Our ops guys co-ordinate this. We help with geo mapping, the franchisees do the sales pitch. We give them the format.
“The more driven and focussed we are on kids, parents will see how appealing our product is, and that drives complementary purchases.”
The business is pushing an a la carte menu with all items made fresh to order.
“Our sushi is made within the hour, and each store has a dedicated sushi roller who is visible to the customers. This gives them confidence in the freshness of the product and hygiene safety. Providing transparency about what staff are doing is important.”
Tokyo Sushi Kitchen’s ingredients are pre-marinated and delivered through a national distribution network.
“We see our brand as an innovator,” says Lay. The latest development addresses a new demographic.
“Fully fledged vegan managers are redeveloping our brand so we can appeal to vegetarians and vegans. It gives us a point of difference.”
Six outlets will open this year, bringing the chain to 17 stores. About 40 per cent of these are company owned and used for training and menu trials.
Outlets sit in sub-regional shopping centres and the fringes of Melbourne, 30 to 40km from the city. There is only one store in the city centre.
“It’s important to sustain competitive leases,” says Lay.
“Our mission is to dominate wherever we are.”
Franchisees are the priority, he says, and that means negotiating with landlords to secure great deals that allow franchisees to trade at a competitive price and retain a good margin. The store footprint is typically 70 to 100 sqm, and new outlets include in-house seating.
Expansion to South Australia is coming up, with a Mount Gambier site in the pipeline. It is part of an 18-month expansion plan, with Lay eyeing up the Brisbane market down the track.